The Small Business Administration (SBA) released a preliminary application checklist on Friday (March 5) for businesses looking to apply for the Shuttered Venue Operators Grant (SVOG) program. While the application or application date is still pending, the checklist will help independent businesses that plan to apply to prepare the appropriate documents necessary to receive the much-needed funding as soon as possible.
Located on the SBA’s website, the checklist outlines that all applicants will need a written state of need and assurance, corporate documents, government issued photo ID, employee list with job titles and employment states such as full or part time, and a tax-exempt letter if the business is a non-profit.
Financial documents needed for the application will include 2019 and 2020 tax returns and quarterly income statements. The SBA will also require payroll statements covering Feb. 29, 2020, and a copy of the most recent audited financial statements from 2019.
According to the checklist, “The SVOG application process is still under development and this list is subject to further refinement.” The document adds that “This is not an all-inclusive list and additional documents may be required to meet eligibility and compliance.”
The checklist also breaks down what different types of documents will be needed from the varying businesses that can benefit from these funds, from live music venues to movie theaters, museums and talent representatives. The lengthiest list of needed documentation is for live venues and promoters who will need to prepare floor plans and documents showing that the venue has audio mixing equipment, a lighting rig and a public address system. Venue operators will also need to show marketing material with event titles and ticket prices and box office/ticketing reports that provide date, ticket price and the number of tickets sold.
Talent representatives will need to provide examples of contracts with the talent they represent and venues they have worked with. A roster of individuals or acts represented between 2019 and 2020 will also be required.
The preliminary checklist goes on to breakdown what documentation will suffice for each requirement to help businesses prepare. After nearly 10 weeks, the preliminary checklist gets venues closer to understanding the full scope of what will be needed to receive up to $10 million from the SVOG.
In the meantime, the Senate proposed an amendment to the SVOG program that would allow venues to apply for the new round of Paycheck Protection Program (PPP2) loans that closes March 31. As of right now, those seeking SVOG funds cannot receive any PPP2 money or it would make them ineligible for the grants. The amendment is currently part of the latest stimulus package making its way through congress.
Head here for the full preliminary checklist provided by the SBA.